Investment Q&A

Q: We don't have any consumer staples yet as we have been focusing on dividend yields for retirement income. We are looking at adding one or more of the above to our holdings for growing income and capital gains. We see that you have L in the income portfolio and we see that emp.a has acquired the co-op stores. What are your comments and preference(s) on the above at this time? Thank you very much.

Q: Hello Peter & Co,
2015 seems to have started on a positive note; I have not transacted much at all. My RRIF is a combination of your original equity and sprinkles of the growth portfolios (ytd return of 11%)
Consumer (7.9% weight) ATD,BYD.UN,CGX,DOL
Consumer cyclical (3.5%) LNR, MG
Energy (5.6%) TOU,VET,WCP
Energy Infra (8.1%) ENB,IPL,KEY,PPL
Financials (7.8%) BNS,CXI,EFN,TD
Health (9.9%) CPH,CXR,GUD,PHN,RX,VRX
Industrials (7.9%) BIN,BIP.UN,CCL,CNR
Materials (5.8%) CHE.UN,IFP,SJ
Technology (16.0%) CSU,DSG,ESL,CGI,MDA,OTC
Utilities/Telco/RE (10.6%) ALA,BCE,BEP.UN,FSV,TCN
I greatly appreciate your comments
Thanks,
Antoine

Q: BAM.A continues to fall since your most recent comments. It currently trades at $64.40. I recently started to accumulate the stock at $67.90 as a long-term hold. I would appreciate knowing your current thoughts and if you suggest continuing to average in or wait until the apparent correction runs further. Thank you.

Q: Hi team I have held SPB for years now, I was wondering if its recent price drop is warranted based on it most recent results, or does this represent a buying opportunity. I am looking to buy it in my TFSA. Thanks again for your great help and advice.

Q: Dear Gentlemen,
I need to re-balance in Industrial sector.
I own WSP 6% (+17%), STN 4.5% (-2%) and MDA 2% (+7%)
I What you suggest to re-balance in this sector ?
Thanks
Best Regards

Q: Significant insider trading in PHM and ESL seems to have coincided with increased volatility in PHM and a plateauing of ESL. Any relationship between the insider trading and stock activity do you think?

Q: I recognize that the portfolios have shifted away somewhat from energy and energy infrastructure. My energy exposure is a little over 9%. I recently dipped my toes in and added more, specifically Shawcor (SCL). Would you consider this an energy name or an industrial? As an offsetting trade, would Canadian Utilities be appropriate? They seem to have visibility in earnings growth, are leveraged to the Alberta economy including the Structures division, and with the lower yield shouldn't get too hammered like other utilities in a rising interest rate environment. Long-term time horizon and near a 52 week low. I would appreciate your thoughts. Thanks!

Q: What are your thoughts on Transcontinental. It has been making new highs recently.

Q: Hi, I have one more question for you. Could you please suggest an equity that is returning over 6% in Dividends that might also have more share price upside potential than downside. I would be looking to hold for a year or more. I realize these loftier divi's could be problem for many companies so I would be satisfied with an answer of nothing at this time. Some Safety would be a concern with this holding. Thanks

Q: Hi Guys. Peter, I Hope you were able to do some cycling on the weekend . Could I please have your view of this Company? I took an exploratory super small position in it last week with some free cash. Is there anyone else in the body camera biz that might prove to be a more promising pick? I also hold AVO but I would consider it a slightly different Application/Customer focus. Thanks

Q: Hello Team
What is your opinion of Finning's fundamentals? How sensitive do you think they are to the energy sector? Is their debt level of concern?

Thank You
Clarence

Q: I am having difficulty determining and rationalizing payout ratios. Different sites give different ratios. A couple days ago you answered a question on Pembina stating the dividend is safe. GlobeInvestor tells me the eps is 1.07 and the dividend per share is 1.74 giving a payout ratio of 162%. Several other prominent dividend companies also show payout ratios over 100% using the same methodology. Am I missing something or are these dividend payouts at risk?

Thanks so much!

Gary

Q: Hi 5i team,

I was wondering if this would be a good time to move into corporate bonds via ZMU (BMO mid-term US IGCorporate bonds)?

Thanks for your hard work.

Q: I am entering my second year following your research, and still own some companies prior to following your portfolios. Could you please advise whether you suggest I continue holding the following, or substituting these with others from your portfolio.
I still own: BMO, CPG, TOU, TMA and DIR.UN.... Thank you.

Q: Can you tell me who is heavily involved in rail braking systems in view of the latest safety requirements? Thanks

Q: To round out recent comments on ATD.B (Alimentation Couche-Tard), here are excerpts from a couple of recent articles:

In a research note, senior analyst Bonnie Herzog said she believes positive trends in the convenience-store sphere will continue as “the industry is embarking on a new era of sophistication and growth.”

As the industry continues to grow, it remains fragmented and larger chains continue to get stronger. Strong fuel margins, despite soft gallon trends, will help to drive future growth across the industry, the report said.

Full article here: http://www.cspnet.com/industry-news-analysis/corporate-news/articles/analyst-bullish-state-convenience

Like all large convenience-store chains—especially those that have grown excessively through acquisition— The Pantry lays claim to some “premium” locations and others “in worse shape than average.” Therein lies the biggest challenge and greatest opportunity for new owner Alimentation Couche-Tard as it begins to integrate The Pantry’s Kangaroo Express c-stores into its business, according to a new report from a convenience-store analyst.

Full article at http://www.cspnet.com/industry-news-analysis/corporate-news/articles/challenges-opportunities-integrating-pantry

Q: Hi,
I realize you get asked about sector allocation percentages often but could you give me your thoughts today on what you think they should be. We r moderate/aggressif investors. Would you be holding cash right now?
What would you buy in the US for the industrial sector?
Thank you

Q: Hi Peter,

Since I bought it at start of this years portfolio the stock has been down a little over 10% in a very short time period.

Any developments of note in the past month that would cause this drop?

Thanks

Q: I just funded my non registered account with some money. I may purchase on margin at a later date. Just curious if you could give me some ideas on some companies that pay a dividend for a long term hold preferably that qualify for the dividend tax credit but it could be interest dividend as well. I was thinking AW.UN, HWO, DRG.UN, PZA and CHP.UN Also if any uou recommend that I didn't mention Thanks.

Jimmy

Q: I noticed on your Summary for April that HNL was the best performer, up 44%. It had fallen off my radar list after my selling at a loss months ago.
If one were willing to take on some risk right now which of the 3 would you recommend HNL,CHW or BDI - or do you consider all too risky and the 44% jump in HNL akin to a dead cat bounce? And therefor look elsewhere for some "wins".

Thanks for your help.